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FAQ Archives - DSP V – March 2021 Solicitation

The FAQs on this page are no longer relevant, as they are from past solicitations.  These FAQs are posted here only for reference purposes.  Do not rely on the information provided on this page for the current solicitation.

• FAQ-61:
  Why does the Network Service Peak Load (NSPL) data drop below the Peak Load Contribution (PLC) data starting in January 2021 in the file “PECO_SC_PLC&NSPL_Data – February 2021”?
  
  The data in the file “PECO_SC_PLC&NSPL_Data – February 2021” has been confirmed. It is the responsibility of the bidder to interpret possible reasons for changes in the data. NSPL is effective for the calendar year (Jan-Dec), whereas PLC is effective for the PJM year (Jun-May). Any relationship between PLC and NSPL, if exists, would not be present January through May.
  
  03/01/2021 in Data
  
  
• FAQ-60:
  What services do Default Suppliers for the CCI Class provide and what is the basis for which a Default Supplier for this class is paid?
  
  For the CCI Class, the product to be procured is for full requirements service with energy priced to the PJM day-ahead spot market. As described in paragraph I.4.3 and in the Uniform SMA, full requirements service includes, without limitation, energy, capacity, transmission (excluding Network Integration Transmission Service), ancillary services, AECs for compliance with the AEPS Act, transmission and distribution losses, congestion managements costs, and such other services or products that are required to serve the specified percentage of Default Load for that Class (except for distribution service). 
   
  The basis for which a Default Supplier is paid for the CCI Class is different than for the RES and SC classes. For the CCI Class, a Default Supplier, for each MWh of electric load served, is paid:
   
  1. A supplier-specific price, which is the average of approved Bids for that Default Supplier for the   CCI product; and
   
  2. The PJM day-ahead price for energy and the Reliability Pricing Model (“RPM”) price for capacity.
   
  02/26/2021 in General
  
  
• FAQ-59:
  Can PECO please clarify how the peak load contribution (PLC) is calculated?  Are the PLCs based on weather-normalized peak load?
  
  PECO provides information regarding the calculation of peak load contribution (PLC) and network service peak load (NSPL) on their website here. Choose "Electric," "PECO Annual ICAP," then "2021".
  See slide 2 of the presentation entitled “Calculations of Peak Load Contribution (PLC) AND Network Service Peak Load (NSPL) which indicates that the PLC is based on PECO’s share of PJM’s weather-normalized peak load from the previous summer (June through September).
   
  02/26/2021 in Data
  
  
• FAQ-58:
  What are the line loss factors for calculating retail load from wholesale load?
  
  The loss percentages for each customer class are available in PECO’s Current Electric Generation Supplier Tariff (see 6.6 Line Losses on page 30) available here: Current Electric Rate Information | PECO - An Exelon Company
  
  02/26/2021 in Data
  
  
• FAQ-57:
  What time is the deadline to submit the Pre-Bid Letter of Credit on Thursday, February 25, 2021?
  
  The Part 2 Proposal, including the Pre-Bid Letter of Credit, must be received by the Independent Evaluator by 12PM (noon) EPT, February 25, 2021, the “Part 2 Date”. The Pre-Bid Letter of Credit must be submitted as an electronic PDF file via electronic means to the Independent Evaluator at PECOProcurement@nera.com.
  
  02/24/2021 in Credit
  
  
• FAQ-56:
  What materials do I need to submit with my Part 2 Proposal if the officer who made the representations and certifications of the online Part 1 Form is unavailable to make the representations of the online Part 2 Form?
  
  As stated in paragraph V.1.2 of the March 2021 RFP Rules, if the Officer of the RFP Bidder who made the representations and certifications of the online Part 1 Form is unavailable to make the representations of the online Part 2 Form, the RFP Bidder must re-submit the certifications of the Part 1 Form by email naming a new individual to serve as Officer of the RFP Bidder by the Part 2 Date, and that Officer of the RFP Bidder must make all representations and certifications required by the online Part 1 Form and the online Part 2 Form. In particular, in the March 2021 Solicitation, the Officer of the RFP Bidder would be required to complete the P1 Certifications (A) Insert (#P1-6) and the P1 Certifications (B) Insert (#P1-7) required under the Part 1 Proposal by the Part 2 Date.
  
  02/24/2021 in Rules
  
  
• FAQ-55:
  In this March 2021 Solicitation, will an RFP Bidder with Bids that are approved by the Commission execute a new Uniform SMA and guaranty (if applicable)? If relying on the financial standing of an RFP Guarantor, is the RFP Bidder required to complete the Guaranty Intent Insert (#P2-2), Guaranty Insert (#P2-3) and the Delay Guaranty Insert (#P2-4)?
  
  PECO and each RFP Bidder with Bids that are approved by the Commission execute a single Uniform SMA and guaranty (if applicable) during the course of DSP V. Since the March 2021 Solicitation is the first solicitation under PECO’s fifth Default Service Program (“DSP V”), an RFP Bidder with Bids that are approved by the Commission must execute the Uniform SMA and guaranty (if applicable) that was approved for DSP V. Additionally, there is no abbreviated qualification process for the March 2021 Solicitation, and an RFP Bidder relying on the financial standing of an RFP Guarantor is required to complete the Guaranty Intent Insert (#P2-2) and either the Guaranty Insert (#P2-3) or the Delay Guaranty Insert (#P2-4).
  
  02/24/2021 in Rules
  
  
• FAQ-54:
  Will the Independent Evaluator retain a Pre-Bid Letter of Credit between solicitations if requested by an RFP Bidder?
  
  The Independent Evaluator will retain a Pre-Bid Letter of Credit between solicitations if requested by an RFP Bidder.
  
  02/21/2021 in Credit
  
  
• FAQ-53:
  Are the Total Peak (MW) and Default Peak (MW) on page 8 of the Bidder Information Webcast updated for Planning Year 2021-2022? If so, please provide the date when the Total Peak (MW) and Default Peak (MW) were calculated.
  
  The Total Peak (MW) and Default Peak (MW) were calculated on December 21, 2020 and are updated for Planning Year 2021-2022.
  
  02/19/2021 in Data
  
  
• FAQ-52:
  When can an RFP Bidder propose modifications to the Standard Pre-Bid Letter of Credit?
  
  For the March 2021 Solicitation, RFP Bidders had the opportunity to propose modifications to the Standard Pre-Bid Letter of Credit from the date of publication of the Addendum to RFP Rules (12/28/2020) through the Part 1 Date (02/12/2021). The Independent Evaluator has posted the final list of acceptable modifications to the Pre-Bid Letter of Credit to the Supplier Information – Documents page. An RFP Bidder must submit a Pre-Bid Letter of Credit in the form of the Standard Pre-Bid Letter of Credit or must incorporate only modifications that have been approved by PECO and provided to RFP Bidders by the Independent Evaluator.
  
  02/17/2021 in Credit
  
  
• FAQ-51:
  Is there a redline of the RFP Rules for DSP V to the latest version under DSP IV?
  
  The RFP Rules posted to the Supplier Information page on 12/28/2020 was approved by the Pennsylvania Public Utility Commission in their decision on PECO’s fifth Default Service Program (“DSP V”) in its Order dated December 3, 2020 (Docket No. P-2020-3019290). A redline to the DSP IV version was filed with the petition for DSP V and is available on PECO’s website here: https://www.peco.com/SiteCollectionDocuments/ExhibitJJM8.pdf. Please note that the Bid Date for this solicitation changed since the filing and is March 2, 2021.
  
  02/09/2021 in Rules
  
  
• FAQ-50:
  When does PECO expect to implement a new time-of-use (“TOU”) rate option for residential and small commercial customers and what are the plans for sourcing the rate?
  
  PECO is planning to implement a new TOU rate option for default service customers on or after September 1, 2021.   Any residential customer who elects to go on TOU rate will be assigned to the residential default load.  Any small commercial customer who opts to go on the TOU rate will be assigned to the small commercial default service load.
  
  02/04/2021 in Rates
  
  
• FAQ-49:
  Is there a redline of the Uniform SMA for DSP V to the version under DSP IV? 
  
  The Uniform SMA posted to the Supplier Information page on 12/28/2020 was approved by the Pennsylvania Public Utility Commission in their decision on PECO’s fifth Default Service Program (“DSP V”) in its Order dated December 3, 2020 (Docket No. P-2020-3019290). A redline to the DSP IV version was filed with the petition for DSP V and is available on PECO’s website here: https://www.peco.com/SiteCollectionDocuments/ExhibitJJM5.pdf
  
  02/03/2021 in General
  
  
• FAQ-48:
  Can a Default Supplier that does not own generation or use their generation to serve Default Load provide generation by fuel source data from the State of the Market Report for PJM to complete Appendix H?
  
  The inclusion of the new Appendix H in the SMA was approved by the Pa PUC to enable PECO to provide better information in its annual report to the Commission on default service.  Under the Commission’s regulations (52 Pa. Code section 54.39), PECO must report “the percentage of total electricity supplied by each energy source, including a detailed breakdown of renewable resources as defined in section 2803 of the code (relating to definitions).”

  PECO intends to aggregate supplier-provided information from Appendix H when compiling this data and will not attribute the generation delivered to any particular supplier or suppliers.

  PECO is not being prescriptive on how to complete Appendix H.  If a supplier cannot determine the actual generation resource mix delivered to PECO under the SMA in a calendar year and chooses to use the PJM system mix for the calendar year as a proxy for their generation sources, we request that be notated on Appendix H when the completed form is submitted to PECO so that we may footnote which of our reported data is based on the PJM average mix and which is not.
  
  01/25/2021 in General
  
  

• FAQ-47:
  Is the load profile information from 2011 that is provided on the Additional page of the Data Room the latest data available?
  
  The load curves published on the website are weather-response functions (WRFs) calculated in 2011 that are performing their load shape estimation function well and are expected to be in place for the foreseeable future.

  Please note that from 2014 onwards, PECO has been using actual per-customer AMI interval readings to calculate the final PJM settlement, and the use of WRFs is mostly limited to preliminary settlements and forecasts. Furthermore, PECO load estimation methodology includes an annual recalculation of usage factors that adjust estimations up or down based on the energy consumption trends.
  
  01/25/2021 in Data
  
  

• FAQ-46:
  Where can I find ICAP Weather Factors for each load profile? 
  
  ICAP Weather Factors are available in the Data Room - Additional Data section of the RFP website. 
  
  01/20/2021 in Data
  
  
• FAQ-45:
  Can we submit cash or a surety bond instead of posting a Pre-Bid Letter of Credit with the Part 2 Proposal?
  
  No, neither cash nor surety bonds are an acceptable form of pre-bid security. With the Part 2 Proposal, an RFP Bidder must provide an executed Pre-Bid Letter of Credit. An RFP Bidder must either use the Standard Pre-Bid Letter of Credit available on the RFP website, or a Pre-Bid Letter of Credit that incorporates only those modifications to the Standard Pre-Bid Letter of Credit that have been approved by PECO and posted to the RFP website.
  
  01/20/2021 in Rules
  
  
• FAQ-44:
  On November 23, 2020, Act 114 of 2020 was signed into law. As stated in the PaPUC’s Tentative Implementation Order, dated January 14, 2021, “Act 114 of 2020 establishes geographical limits on energy resources that qualify as Tier II resources under the Alternative Energy Portfolio Standards (AEPS) Act”. Are Default Suppliers responsible for providing alternative energy credits that are compliant with Act 114?
  
  Yes, Default Suppliers are responsible for providing the alternative energy credits necessary for PECO to meet its obligations under the Alternative Energy Portfolio Standard (“AEPS”) Act during the term of the Uniform SMA.
  
  01/20/2021 in Rules
  
  
• FAQ-43:
  Will the Uniform SMA be updated to use a proxy price and true-up mechanism due to the delay in the PJM Base Residual Auction for the 2022/23 delivery year?
  
  A proxy price and true-up mechanism will not be used. No modifications will be made to the products available in the March 2021 Solicitation or to the Uniform SMA in response to the delay of PJM’s Base Residual Auction (“BRA”) for the 2022/23 delivery year. All products and the Uniform SMA will remain as approved by the Pennsylvania Public Utility Commission PECO DSP V Order (Docket No. P-2020-3019290) dated December 3, 2020.

  The BRA for the 2022/2023 delivery year was delayed due to a FERC proceeding considering changes to PJM's capacity market (Docket Nos. EL18-178-001, EL18-1314002 (consolidated)). The delayed BRA for the 2022/2023 delivery year has now been rescheduled, but will not be held prior to the Bid Date on March 2, 2021. The BRA for the 2022/2023 delivery year when held will provide a visible capacity price for the last twelve months of the 24-month products. Bidders offering to supply the 24-month products are entirely responsbile for any uncertainty related to the lack of visibility of the capacity price for those months. 
  
  01/19/2021 in General
  
  

• FAQ-42:
  Can PECO provide more up-to-date historical load data considering the COVID-19 pandemic event?
  
  Please see the following link to metered hourly load data by class that PECO is providing voluntarily and on a temporary basis for informational purposes only in response to the COVID-19 pandemic event: https://www.peco.com/MyAccount/MyService/Pages/meteredhourlyloadbyclass.aspx
  
  12/22/2020 in Data
  
  
• FAQ-41:
  Is Buyer or Seller the responsible party for Network Integration Transmission Service (ID #1100)?
  
  PECO is the responsible party for Network Integration Transmission Service charges (ID #1100). Appendix D to the Uniform SMA provides the PJM Billing Statement line items, including transmission charges, and the responsible party (Buyer or Seller) for each item.
  
  12/22/2020 in Contract
  
  
• FAQ-40:
  What materials do I need to submit with my Part 2 Proposal if the officer who made the representations and certifications of the online Part 1 Form is unavailable to make the representations of the online Part 2 Form?
  
  As stated in paragraph V.1.2, if the Officer of the RFP Bidder who made the representations and certifications of the online Part 1 Form is unavailable to make the representations of the online Part 2 Form, the RFP Bidder must re-submit the certifications of the Part 1 Form by email naming a new individual to serve as Officer of the RFP Bidder by the Part 2 Date, and that Officer of the RFP Bidder must make all representations and certifications required by the Part 1 Form and the Part 2 Form.
  
  12/22/2020 in Rules
  
  
• FAQ-39:
  Does a Bidder submit a single Pre-Bid Letter of Credit for all products on which it plans to bid?
  
  An RFP Bidder must, in its Part 2 Proposal, submit a single Pre-Bid Letter of Credit in an amount of at least: (i) $250,000 per tranche bid on products for the Residential and Small Commercial Classes; and (ii) $125,000 per tranche bid on a CCI product (if applicable). This Pre-Bid Letter of Credit must be in the form of the Standard Pre-Bid Letter of Credit provided as Appendix 9 to the RFP Rules or must incorporate only modifications that have been approved by PECO and posted to the RFP website.
  
  12/22/2020 in Credit
  
  
• FAQ-38:
  In order to accurately represent delivered hourly load volumes, should the hourly load data posted in the Data Room be adjusted with the UFE data also posted?
  
  Prior to March 2015 UFE is allocated to monthly-metered customers and not to hourly/interval metered customers. Hourly energy values developed from interval or recorder meters do not include UFE. For non-interval metered customers, UFE amounts do not need to be added to the historical hourly loads posted to the Data Room since they already include UFE. Starting in March 2015 UFE is allocated to all customers, including hourly/interval metered customers.
  
  12/22/2020 in Data
  
  
• FAQ-37:
  When completing the Bid Form, if we do not want to submit a Bid for a tranche, do we leave the space provided blank or enter $0?
  
  When completing your Bid Form, Bids should be entered from top to bottom in Section 2 in the “Bids” tab of the Bid Form. Tranches for which no Bid is provided must be left blank. Please note that each price on the Bid Form is for a single tranche. A “Bid” is a price in $/MWh for one tranche of a given product.
  
  12/22/2020 in Rules
  
  
• FAQ-36:
  What settlement volume are Default Suppliers get paid on?
  
  Default Suppliers are responsible for and are paid based on a percentage of the Default Load for a Class. The applicable settlement volume includes distribution losses, transmission losses, unaccounted for energy (as reflected in PJM settlement volumes), and adjustments required by PJM for PJM’s derating in conjunction with implementation of marginal losses as appropriate per PJM Agreements. The hourly load data provided in the Data Room includes both applicable distribution and transmission losses, and has not been de-rated. PJM hourly de-ration factors and the hourly UFE values are available separately on the Data Room page on the RFP website. Please also see the Data Description Document, for information regarding how PECO allocates Unaccounted For Energy (“UFE”) to all Load Serving Entities (“LSEs”) in PECO’s zone.
  
  12/22/2020 in Contract
  
  
• FAQ-35:
  An RFP Bidder that is relying on the financial standing of an RFP Guarantor and is not a Default Supplier must provide a complete Guaranty Intent Insert (#P2-2) with the Part 2 Proposal. How do I calculate the Indicative Amount?
  
  The Indicative Amount must meet or exceed the sum of: (i) $600,000 times the number of tranches bid on products for the RES and SC Classes for full requirements on a fixed-price basis; and (ii) $300,000 times the number of tranches bid for the CCI Class for full requirements service on a spot-price basis (if applicable). Please see Section V.3.2 of the RFP Rules for additional information.
  
  12/22/2020 in Credit
  
  
• FAQ-34:
  Are Default Suppliers responsible for the AEPS Quarterly Adjustments?
  
  As fully described in Appendix E to the Uniform SMA, PECO provides Default Suppliers with an estimate of AEPS obligations following the second quarter of the AEPS reporting period with a final statement within thirty (30) calendar days of the end of the AEPS reporting period. Data on AEPS Quarterly Adjustments is available on the Pennsylvania Alternative Energy Credit Program website here: http://www.pennaeps.com/electricity-suppliers/

  As stated in Appendix E, “If AEPS requirements change by law or any other reason, DS Supplier shall be responsible for providing the credits at its expense in order to comply with its obligations under Full Requirements Service.” A Default Supplier that fails to provide sufficient AECs for a tranche will be required to pay any AEPS penalties, costs, charges, etc. assessed against the Default Supplier and/or the Company associated with the Default Supplier’s non-performance with AEPS requirements.
  
  12/21/2020 in Data
  
  

• FAQ-33:
  Can you confirm that the hourly load data, and daily PLC and NSPL data in the Data Room has not already been adjusted for the NYPA allocation?
  
  The daily peak load contribution (“PLC”) and network transmission service peak load (“NSPL”) data for the Residential class are not adjusted for the NYPA allocation. Hourly load data for the Residential Class, which is broken down by load related to PECO’s default service customers (“Default Energy”) and load related to customers who have elected to be supplied by an Electric Generation Supplier (“EGS Energy”), is handled differently. In regards to the hourly load data for the Residential class, PECO subtracts the NYPA allocation from the Default Energy (MWh) column and adds a corresponding amount to the EGS Energy (MWh) column. For more information see the data description document posted to the Monthly data page in the Data Room. As a reminder, PECO assumes responsibility of approximately 1% of the Default Load of the Residential Class and the data in the Data Room has not be adjusted for this amount.
  
  12/21/2020 in Data
  
  
• FAQ-32:
  Does the hourly load data provided in the Data Room include transmission and distribution loss factors?
  
  The hourly load data provided in the Data Room includes both applicable distribution and transmission losses. These hourly load values will be de-rated by PJM for marginal losses prior to energy settlement. PECO provides hourly marginal loss deration factors in the Data Room. Please see Section 3.a.iii. Assumptions on page 10 of the data description document for assumptions and additional information related to the hourly energy data provided.
  
  12/21/2020 in Data
  
  
• FAQ-31:
  What products will be available in the March 2021 Solicitation?
  
  The March 2021 Solicitation will seek to procure full requirements service for three classes of customers: the Residential (“RES”) Class, the Small Commercial (“SC”) Class, and the Consolidated Large Commercial and Industrial (“CCI”) Class. A product for purposes of this RFP is defined by three characteristics: a) the Class to which it contributes Default Supply; b) the length of the supply period; and c) the date at which the supply period begins. For example, the RES-12-Jun21 product represents Default Supply for the RES Class for the supply period from June 1, 2021 through May 31, 2022. The products available in the March 2021 Solicitation are RES-12-Jun21 (12 tranches), RES-24-June21 (11 tranches), SC-12-Jun21 (6 tranches), SC-24-Jun21 (3 tranches), and CCI-12-Jun21 (8 tranches).
  
  12/21/2020 in General
  
  
• FAQ-30:
  We do not have an RFP Guarantor that meets the creditworthiness requirements under the Uniform SMA. Does this mean that we cannot participate in the RFP?
  
  An unrated entity or an entity with a credit rating below BBB- for S&P and/or Fitch or below Baa3 from Moody’s would not be granted any Unsecured Credit and cannot serve as an RFP Guarantor under the terms of the Uniform SMA (see Appendix A). It is not a requirement for an RFP Bidder to be rated or to rely on the financial standing of a Guarantor that meets the creditworthiness requirements in order to participate in the PECO RFP. In this case, the RFP Bidder would not be granted any Unsecured Credit and must post any required performance assurance collateral in the form of cash or a letter of credit.
  
  12/21/2020 in Credit
  
  
• FAQ-29:
  Is there a cap on the number of tranches that an RFP Bidder can potentially bid?
  
  Yes, an RFP Bidder may have a Load Cap. The Independent Evaluator prepares a Bid Form for each RFP Bidder qualified pursuant to a successful Part 1 Proposal. If the RFP Bidder cannot bid on all tranches available of a product because of the Load Cap for the Class to which such product belongs and because of tranches previously won by the RFP Bidder, the Bid Form reflects that fact. Generally speaking, each Class has “Load Caps”, which are limits on the number of tranches of Default Supply that an RFP Bidder can bid and serve for that Class. The Load Caps ensure that there will be a diversified pool of Default Suppliers for each Class. The Load Caps for a Class are set so that the Default Service customers of that Class have no more than a 50% exposure to anyone Default Supplier at any given time. If two or more Default Suppliers are affiliated, the Load Caps will apply jointly to such group of Default Suppliers. More information on Load Caps is provided in paragraph 1.2.10 of the RFP Rules and in Section I.3 of the Addendum to the RFP Rules.
  
  12/21/2020 in Rules
  
  
• FAQ-28:
  Will DS Suppliers be responsible for Transmission Enhancement charges?
  
  PECO is the responsible party for Transmission Enhancement charges (ID #1108). Appendix D to the Uniform SMA provides the PJM Billing Statement line items, including transmission charges, and the responsible party (Buyer or Seller) for each item.
  
  12/21/2020 in Rules
  
  
• FAQ-27:
   In the Uniform SMA Insert (#P1-4), an RFP Bidder is given the option to add subsection 5.4(a)(1). What calculation is used to calculate quantities if the RFP Bidder chooses to not add this subsection?
  
  If you opt for the notional quantity provision, under an event of default, future quantities are determined by looking at quantities from the previous calendar year and making any adjustments for DS Load changes (i.e., for current switching levels). In that manner, historical data is used and the quantities largely are pre-specified. The alternative is expected to use a forecast that would be made at the time of default; under such an option the quantities could not be pre-specified.
  
  12/21/2020 in Rules
  
  
• FAQ-26:
  Is it required for the RFP Bidder to be registered to do business in the state of Pennsylvania?
  
  No, it is not a requirement under the Uniform SMA for suppliers to be registered to do business in the state of Pennsylvania. Please see Section 3.1 of the Pennsylvania Default Service Supplier Master Agreement (“Uniform SMA”) which states, the DS Supplier “is a corporation, partnership, limited liability company or other legal entity, duly organized, validly existing and in good standing under the laws of the Commonwealth of Pennsylvania or, if another jurisdiction, under the laws of such jurisdiction and, in such case, is duly registered and authorized to do business in such other jurisdiction.”
  
  12/21/2020 in Contract , General
  
  
• FAQ-25:
  Is there a credit-based tranche cap in the PECO RFP?
  
  No, there is no cap on the number of tranches for which an RFP Bidder can bid on based on the credit assessment for the entity on which that RFP Bidder is relying. There are, however, load caps for a Class that are set so that the Default Service customers of that Class have no more than a 50% exposure to any one Default Supplier at any given time.
  
  12/21/2020 in Credit , Rules
  
  
• FAQ-24:
  Are Default Suppliers responsible for providing any of the services or products included in full requirements service for the fractional percentage of committed energy and capacity obtained under contract with Allegheny Electric Cooperative, Inc. for supply from the New York Power Authority (“NYPA”)?
  
  No. Default Load for the Residential Class is reduced by a fractional percentage of committed energy and capacity obtained under contract with Allegheny Electric Cooperative, Inc. for supply from the New York Power Authority (“NYPA”). Default Suppliers are not responsible for providing any of the services or products included in full requirements service for NYPA supply.
  
  12/21/2020 in Contract
  
  
• FAQ-23:
  Can RFP Bidders request modifications to the Uniform SMA?
  
  The Uniform SMA was approved by the Commission in Docket No. P-2020-3019290 and comments will not be accepted at this time. RFP Bidders that apply to participate in the PECO RFP are required to accept all of the terms of the Uniform SMA without modifications. The Uniform SMA is posted on the Supplier Documents page of the RFP website as Appendix 1 to the RFP Rules: www.pecoprocurement.com/index.cfm?s=supplierInformation&p=documents
  
  12/21/2020 in Contract
  
  
• FAQ-22:
  If the State of Pennsylvania increases the AEPS obligation, is the Default Supplier responsible for the incremental cost?
  
  Yes. Please see Appendix E of the Pennsylvania Default Service Supplier Master Agreement (“Uniform SMA”) which states, “If AEPS requirements change by law or any other reason, DS Supplier shall be responsible for providing the credits at its expense in order to comply with its obligations under Full Requirements Service.”
  
  12/21/2020 in Contract
  
  
• FAQ-21:
  Is it acceptable to rely on the financial standing of a Foreign Guarantor?
  
  Yes, RFP Bidders may rely on the financial standing of a Foreign Guarantor. Please see Paragraphs IV.5. and V.5. of the RFP Rules for additional requirements applicable to RFP Bidders with Foreign Guarantors. The RFP Rules are available on the Supplier Documents page of the RFP website: http://www.pecoprocurement.com/index.cfm?s=supplierInformation&p=documents
  
  12/21/2020 in Credit
  
  
• FAQ-20:
  Is cash an acceptable form of pre-bid security?
  
  No, cash is not an acceptable form of pre-bid security. An RFP Bidder must either use the Standard Pre-Bid Letter of Credit available on the RFP website here, or a Pre-Bid Letter of Credit that incorporates only those modifications to the Standard Pre-Bid Letter of Credit that have been approved by PECO and posted to the RFP website.
  
  12/21/2020 in Rules
  
  
• FAQ-19:
  Who can sign the certifications required for the Part 1 Proposal?
  
  Please see Paragraph III.1.13 of the RFP Rules. For a given solicitation, all representations and certifications required by the RFP, including those required for the Part 1 Proposal and Part 2 Proposal, must be made by a single individual who serves as Officer of the RFP Bidder. An Officer of the RFP Bidder is an individual authorized to undertake contracts (including the Uniform SMA) and bind the RFP Bidder.
  
  12/21/2020 in Rules
  
  
• FAQ-18:
  In Exhibit 1, Transaction Confirmation, included in Appendix C of the Uniform SMA, there are blanks to provide the average costs for the Alternative Energy Credits (AECs). Will PECO provide these numbers to a winning bidder or are these numbers to be provided by the Seller?
  
  Default Suppliers are responsible for providing the AECs necessary for PECO to meet its obligations under the Alternative Energy Portfolio Standard (“AEPS”) Act during the term of the Uniform SMA. The obligations of Default Suppliers in this regard are reduced by the AECs procured separately by PECO. The blanks in the Transaction Confirmation are for the Default Supplier to provide a price for each type of AEC (Tier I, Tier I Solar, and Tier II) that is included in the RFP Bidder’s winning Bids. As specified in the RFP Rules (see Paragraph V.1.2), each such price must be greater than $0/AEC. The RFP Bidder will be required to certify in its Part 2 Proposal that it will comply with this obligation.
  
  12/21/2020 in Contract
  
  
• FAQ-17:
  On what volumes are the percentages listed for Alternative Energy Portfolio Standards (“AEPS”) compliance based?
  
  S quantities are based on electric energy sold by an Electric Distribution Company (EDC) or Electric Generation Supplier (EGS) to retail electric customers. AEPS obligations are calculated based on the retail load, which is delivered energy at the retail meter and does not include marginal los
  
  12/21/2020 in General
  
  
• FAQ-16:
  When are the solicitation results announced?
  
  Within fifteen (15) days of the close of the solicitation, the Independent Evaluator releases the weighted average price as well as the percentage of load represented by each tranche for each product procured in that solicitation. When the results become available, the Independent Evaluator will make an announcement, and you will be able to access the results here: Background/Previous Results.
  
  12/21/2020 in Rules
  
  
• FAQ-15:
  Are the names of winning RFP Bidders publicly available?
  
  No, the names of winning RFP Bidders are not publicly available.
  
  12/21/2020 in Rules
  
  
• FAQ-14:
  Where can I find a comprehensive list of historical default service rates for each customer class?
  
   PECO posts a Default Service rate calculation model that translates the prices determined through this RFP into Default Service rates or “Price to Compare” ("PTC") by customer class since 2017. These PTCs are available on the Company website here below the heading 'PTC Archive': www.peco.com/MyAccount/MyService/Pages/ElectricPricetoCompare.aspx
   
  12/21/2020 in Rates
  
  
• FAQ-13:
  For the remaining Residential Default Load served by PECO, will PECO pay for all of the cost of full requirements service or only the cost of energy and AECs?
  
  In regards to the remaining Default Load, PECO will be a Load Serving Entity in PJM and will acquire all necessary supply through PJM-administered markets and will obtain sufficient Alternative Energy Credits (“AECs”) at market prices to satisfy any near-term obligations under the AEPS Act. Default Suppliers are not responsible for any of the costs related to the portion of the Default Load of the Residential Class served by PECO.
  
  12/21/2020 in Contract
  
  
• FAQ-12:
  Is the hourly load data posted in the Data Room for wholesale energy?
  
  As stated in the data description document, the hourly load data provided in the Data Room on the RFP website includes applicable distribution and transmission losses. These values will be de-rated by PJM for marginal losses prior to energy settlement. PECO provides hourly marginal loss deration factors in the Data Room.
  
  12/21/2020 in Data
  
  
• FAQ-11:
  Is a price on the Bid Form a price for a single tranche? Or does the price associated with the second tranche represent a price offered for two tranches?
  
  Each price on the Bid Form is for a single tranche. A “Bid” is a price in $/MWh for one tranche of a given product.
  
  12/21/2020 in Rules
  
  
• FAQ-10:
  Are the Hourly PJM Deration Factors for the PECO Zone provided in Eastern Standard Time or Eastern Prevailing Time?
  
  Hourly reports align with Eastern Prevailing Time. For instance, Hour 1 pertains to the hour between 12:00 a.m. EPT and 1:00 a.m. EPT. Daylight Savings Time (DST) is treated as follows:
  • Hourly reports spanning the Fall DST period contain 25 consecutive hours.
  • Hourly reports spanning the Spring DST period contain 23 consecutive hours.

  For more information please see the Data Description document posted to the Data Room.
  
  12/21/2020 in Data
  
  

• FAQ-9:
  What was the timeline of the Medium Commercial Class transition from default service on a fixed-price basis to default service on an hourly-price basis?
  
  On June 1, 2016, PECO’s non-residential customers with a Peak Load Contribution between 100kW and 500kW, known as the Medium Commercial Class until May 31, 2017, transitioned from default service on a fixed-price basis to default service on an hourly-price basis with energy priced to the PJM day-ahead spot market. Starting June 1, 2017, these customers were merged with PECO’s Large Commercial & Industrial Class, non-residential customers with a Peak Load Contribution greater than 500kW, to form the Consolidated Commercial & Industrial Class (“CCI”). CCI customers will receive default service on an hourly-price basis with energy priced to the PJM day-ahead spot market.
  
  12/21/2020 in General
  
  
• FAQ-8:
  In the hourly load data file, for the CCI-GS rate schedule, the Default Energy (MWh) is negative for hours 10-13 on 10/27/2017. Also, for those same hours, in the Unaccounted For Energy (UFE) file, the Total Zone UFE (MW) is positive. Please confirm that the data is correct.
  
  The values provided for the Default Energy (MWh) for the CCI-GS rate schedule and the Total Zone UFE in hours 10-13 on 10/27/2017 should be disregarded due to metering error.
  
  12/21/2020 in Data
  
  
• FAQ-7:
  Have any modifications been made to the products available in the March 2021 Solicitation or to the Uniform SMA in response to the delay of PJM’s Base Residual Auction (“BRA”) for the 2022/23 delivery year?
  
  No modifications will be made to the products available in the March 2021 Solicitation or to the Uniform SMA in response to the delay of PJM’s Base Residual Auction (“BRA”) for the 2022/23 delivery year. All products and the Uniform SMA will remain as approved by the Pennsylvania Public Utility Commission PECO DSP V Order (Docket No. P-2020-3019290) dated December 3, 2020.

  The BRA for the 2022/2023 delivery year was delayed due to a FERC proceeding considering changes to PJM’s capacity market (Docket Nos. EL16-49-001, EL18-178-001, EL18-1314-002 (consolidated)). The delayed BRA for the 2022/2023 delivery year has now been rescheduled, but will not be held prior to the Bid Date on March 2, 2021. The BRA for the 2022/2023 delivery year when held will provide a visible capacity price for the last twelve months of the 24-month products. Bidders offering to supply the 24-month products are entirely responsible for any uncertainty related to the lack of visibility of the capacity price for those months.
  
  12/21/2020 in General
  
  

• FAQ-6:
  If we digitally sign the Inserts, what additional document or information must be provided to verify the identity of the signatory? Can you provide an example?
  
  The Independent Evaluator is accepting digitally signed inserts during the March 2021 Solicitation. The Inserts may be completed by digitally signing the Insert and providing along with the completed Insert an additional document or information that verifies the identity of the signatory. Additional documentation or information may include: (i) a certificate of completion if the signatory uses DocuSign; (ii) a Final Audit Report if the signatory uses Adobe Sign; (iii) evidence that the digital signature has been certified by the signatory using a document signing certificate; or (iv) other documentation or information produced by a commercially available software that can be used by the Independent Evaluator to verify the identity of the signatory. The Independent Evaluator will post a Digital Signatures Instructions document to the Documents page of the RFP Website.
  
  12/21/2020 in Rules
  
  
• FAQ-5:
  What is the AEC Solar Penalty in the transaction confirmation and do Default Suppliers complete that information during the confirmation process?
  
   The AEC Solar Penalty is the alternative compliance payment as defined in the Alternative Energy Portfolio Standards Act (“AEPS”).
  On the day the Commission approves some or all of the winning Bids, the Independent Evaluator sends to PECO the Uniform SMA, including all Exhibits, for each New Default Supplier. The Independent Evaluator will update the blank provided for the AEC Solar Penalty at that time.
   
  Please note that Default Suppliers are responsible for providing the AECs necessary for PECO to meet its obligations under the AEPS Act during the term of the Uniform SMA. The obligations of Default Suppliers in this regard are reduced by the AECs procured separately by PECO. In the Transaction Confirmation RFP Bidders must specify a price for each type of AECs (Tier I, Tier I Solar, and Tier II) that is included in the RFP Bidder’s winning Bids. As specified in the RFP Rules (see Paragraph V.1.2), each such price must be greater than $0/AEC. The RFP Bidder will be required to certify in its Part 2 Proposal that it will comply with this obligation.
   
  For more information on a DS Supplier’s obligations related to AEPS compliance, please see Appendix E of the Uniform SMA.
   
  12/21/2020 in Contract
  
  
• FAQ-4:
  What is the price paid to the Default Supplier for a product in which the Default Supplier wins several tranches?
  
  Paragraph I.4.7 of the RFP Rules states, “A Default Supplier for a product will be paid a supplier-specific price for each MWh of electric load served as specified in the Transaction Confirmation for that product. The supplier-specific price for a Default Supplier for a product will be the average of approved Bids for that Default Supplier and for that product.”
  
  12/21/2020 in Rules
  
  
• FAQ-3:
  Is the Aggregated Hourly Load Data on PECO’s website associated with both default service customers and customers being served by Electric Generation Suppliers (EGSs)? Does it include applicable distribution and transmission system losses?
  
  The Aggregated Hourly Load Data on PECO’s website is provided voluntarily on a temporary basis for informational purposes only and is in response to the COVID-19 pandemic event. The data is provided by class and is associated with both default service customers and customers being served by Electric Generation Suppliers (EGSs). The data does not include applicable distribution and transmission system losses.

  Please note that this Data is made available for informational proposes only in response to the COVID-19 pandemic event. The Company is providing the Data on an "AS IS" basis. No warranty, statutorily, express or implied, is made regarding the accuracy, adequacy, completeness, legality, reliability or usefulness of any of the Data.
  
  12/21/2020 in Data
  
  

• FAQ-2:
  What is PECO’s two-step process to settle the hourly load obligations with each LSE and PJM?
  
  PECO settles hourly load obligations with each LSE and PJM via a two-step process:
  • Settlement A – PECO determines the estimated “day after” (delivery day) hourly load responsibility by recreating the load characteristics of the delivery day in question using a combination of available known, preliminary, and historically-based information. PECO then submits the load responsibility for all LSEs serving load on the settled day(s) to PJM in accordance with PJM procedural requirements and energy market schedules.
  • Settlement B – PECO determines the final hourly load responsibility approximately 60 days after an energy delivery month by reconciling actual individual customer meter readings and applicable load profile data with the Settlement A data for that month. PECO then calculates and submits the energy variances from Settlement A hourly scheduling for all LSEs to PJM in accordance with PJM procedural requirements and energy market schedules.

  PECO provides an overview of the determination of hourly load obligations on their website here:

  https://electricandgaschoice.force.com/s/article/Determination-of-Hourly-Load-Obligations-Overview
  
  12/21/2020 in Data
  
  

• FAQ-1:
  We noticed the sum across all classes of the Aggregated Hourly Load Data that PECO is providing in response to COVID-19 exceeds the load data reported by PJM for the PECO zone. Is there a reason for this discrepancy?
  
  The Aggregated Hourly Load Data on PECO’s website is provided voluntarily on a temporary basis for informational purposes only and is in response to the COVID-19 pandemic event. The data is provided by class and is associated with both default service customers and customers being served by Electric Generation Suppliers (EGSs). The data does not include applicable distribution and transmission system losses. The data has not been adjusted for unaccounted for energy and has not been de-rated for marginal losses.

  Please note that this Data is made available for informational proposes only in response to the COVID-19 pandemic event. The Company is providing the Data on an "AS IS" basis. No warranty, statutorily, express or implied, is made regarding the accuracy, adequacy, completeness, legality, reliability or usefulness of any of the Data.
  
  12/21/2020 in Data
  
  

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